Hi PravinJ,
Thanks for sharing your thoughts and explaining SEBI’s POV. However, here are some key concerns:
- Loss of IP - rather lack of IP protection as algos need to be shared with broker and auditors. I am not saying there will be any systematic malpractice by any broker but individuals may violate IP rights.
- Additional cost and overhead- Cost and time taken for auditing might make some strategies useless
- Impractical - parametric changes or minor code changes will require recertification which will really make this impractical
- Simple execution using APIs/ webhooks using alerts will become practically impossible.
- Third party platforms like Tradingview may not be able to offer 2FA making execution complicated and slow.
Really concerned with this paper.